Few things are more challenging than getting your financial life in order. Little wonder most people have their finances in the New Year resolutions in some capacity but at the end of the day, the plans rarely come to fruition. This piece contains practical advice that can help you overhaul your finances in the coming months.
Stop Tax Payments on You Savings
Do you know you can earn up to £1,000 from your savings tax-free? If you are classed as a higher rate tax payer, you can enjoy up to £500 on your savings even if you are operating basic savings account. When you combine this with the £15,240 children’s ISA allowance, you can almost certainly avoid taxes on all your savings accounts.
Move to a New Current Account Provider
Investigating a new current account is straightforward. There is, therefore, no reason why you shouldn’t consider the benefits of moving from your current provider to another. All you need to do is to fill out forms and you will be up and running in as little as 7 days. Some providers will pay you switching bonus as well as monthly rewards that can amount to as much as £200 in total. However, the main benefit lies in the interest on balances. You can get up to 5% of your balance every month!
Bite a Big Chunk off Your Mortgage
Interest rates are at the lowest they have ever been, with homeowners continuing to enjoy really low rates on their mortgages. What this means is that monthly repayments may never be lower than what they are currently. So, before you spend money on other things, consider putting aside more money to take advantage of your overpayment allowances. If you are like most home owners, your mortgage is the chief cornerstone of your financial worries. Your finances will be better for it, if you can pay off your mortgage early as a result of taking advantage of over-payments.
Get Insight into Your Debt Profile
How much do you owe currently? How much interest are you paying on them? Is it possible for you to pay cheaper interest? Credit card companies are always competing for customers so you should consider your options. Moving your credit card debt to a new provider could result in paying zero percent interest for up to three years. However, when taking this option, consider the balance transfer fees. Zero balance transfer fee offers, make more sense especially when you know you can pay off the debt within the allowed zero-interest window. Do you have debt outside credit cards? Consider how low interest personal loans can help you reduce the debt profile.
Put Your Retirement Plan in Motion
Your finances will remain unbalanced until you have a robust retirement plan in place. It’s never too late to get started. The danger with not planning retirement is that you may never be able to truly retire. People with healthy finances focus on keeping debt very low, maintaining a good retirement plan and improving investments. If you already have a pension in place, always analyze performance to determine if you’ll benefit from changes to the overall investment profile or simply increasing your contributions.
Getting your financial life in order is never easy. With these tips, you can get started right now!